People like to take loans in difficult times. Insurance also plays an important role in emergencies. Life Insurance Corporation of India (LIC) is the largest insurance company in the country. It also provides a loan facility along with the benefit of insurance. Yes, if you have a LIC policy, you can also take a loan under it.
Let us tell you that you get less interest on the loan taken by LIC than on the personal loan. Today, we will notify you how much interest you will have to pay for the loan against the insurance policy and what its rules are.
What Is The Rule
- You get this loan only under traditional and endowment policies.
- The loan amount is decided according to the surrender value of the LIC policy. The loan is available only for 80 to 90 per cent of the policy’s surrender value.
- Although the interest rate on loans available against the policy is 10 to 12 per cent, sometimes it also depends on the profile of the policyholder.
- Whenever the policyholder avails of a loan facility, the company mortgages his policy.
- The company deducts the loan amount if the policy matures before repaying the loan.
How To Apply
You can apply online and offline if you also have an LIC policy. You will have to go to the LIC office for the offline method. You must also take KYC documents to apply for an offline loan.
Meanwhile, for online, you must register yourself in LIC e-Sewa. After logging into your account, you can apply for the loan.
Before taking a loan against the policy, you should read all the terms and conditions carefully. If you do not understand something, you can also ask about it. After reading carefully, you can submit the application form and upload the online KYC document. In this way, you can apply for a loan.
